Comet sees credit insurance slashed

Retailer confirms cut but plays down impact on business, despite some suppliers estimating a reduction of 60 per cent on limits
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After slashing cover on DSGi earlier this week, credit insurance provider Euler Hermes has confirmed that Comet has become the latest firm to receive a re-evaluation of protection.

According to Microscope, several suppliers have confirmed that the insurance giant has slashed credit limits by as much as 60 per cent, with some even recording a cut to actual trading levels.

In a statement, Comet confirmed the cut, but was keen to play down the scale and impact the cut would have on its supplier relations. "Like a large number of companies we have been part of a widespread review of insurance levels provided to suppliers by some credit insurers," a spokeswoman for the retailer told the magazine.

"We have seen no change in our overall terms with suppliers and it has had no material impact on our business," she added.